Darren O'Rourke (Meath East, Sinn Fein)
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24. To ask the Minister for Public Expenditure and Reform the measures his Department is putting in place to decrease climate- and-or biodiversity-harmful spending in the public sector; and if he will make a statement on the matter. [46909/23]

Darren O'Rourke (Meath East, Sinn Fein)
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52. To ask the Minister for Public Expenditure and Reform the progress to date on green budgeting analysis and on the development of a standardised, evidence-based approach to assessing the climate impact of policy proposals, as noted in the climate action plan’s annexe of actions; and if he will make a statement on the matter. [46908/23]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 24 and 52 together.

Since 2019, my Department has been reporting the level of climate-related expenditure annually in the Revised Estimates Volume for Public Services. The classification of such expenditure is validated and updated every year before being published with the Revised Estimates.

Building on the progress made in relation to assessment of the probable climate and environmental impact of capital expenditure projects as part of the National Development Plan Review, the next phase of reform of this initiative focuses on both broadening the coverage of green budgeting to further areas of public spending and identifying government spending measures that may be having an adverse impact on climate and environmental outcomes, including biodiversity impacts.

A first step in this regard was the publication of a review of fossil fuel subsidies and other potentially climate-harmful supports in January 2023, incorporating an inventory of fossil fuel subsidies and other potentially climate harmful supports.

In line with this work, my Department has begun working towards incorporating tracking of both climate-favourable and potentially climate-unfavourable expenditure across a wider range of areas, including biodiversity, within the Revised Estimates reporting structures, and is currently in the process of developing an appropriate methodology for this, informed by international experience and the lessons learned to date. Further refinement of the methodology is underway, and it is intended to include a table identifying potentially climate-unfavourable expenditure allocations in the publication of future iterations of the Revised Estimates Volume. My Department will also publish supporting information on methodologies used to arrive at assessments alongside this Volume.

In addition, and as committed to in the Climate Action Plan, my Department is continuing with the Public Spending Code review to continue to enhance alignment with international best practice, including tools to evaluate the climate and environmental investment impacts, methodology for assessing climate risk and uncertainty and compatibility with Ireland’s climate neutrality objective. As part of this work, the OECD assisted Ireland in conducting a review of how we assess the emissions impact of infrastructure investment, which was published earlier this year.

It is my view that green budgeting initiatives and improved approach to assessment of the climate impact of policy proposals can play an important role in enhancing transparency and accountability of public spending, strengthening our understanding of the direct and indirect climate and biodiversity impacts of public expenditure, and improving outcomes.

As with all expenditure allocations, including those that may have a favourable or unfavourable climate and biodiversity impact, Ministers and their Departments in receipt of expenditure allocations voted to them by Dáil Éireann remain responsible for prioritisation in the use of those funds as they progress the spending programmes under their remit.